The right place is in Program Files for your application itself and all data either in MyDocuments (for user data) or AppData for application internal data.
The thing you want to avoid if at all possible is having any writable data in the install directory because if users have UAC enabled files will be redirected to some shadow copied location which slows performance and can wreak havoc on file integrity.
The Windows guidelines are a good guide for this.
Hope this helps,
+++ Rick ---
>So, after years of work my great application is finally ready for prime time. I created the Inno Setup script and it works exactly as I wanted. Now comes the big question. The app is a user friendly almost total VFP Web site builder and content manager, with full inventory for running web stores, with an ActiveX HTML editor. It is totally data driven so it is a full database program. Where do I install it? I have heard that you don't put a lot of data in the Program Files (x86) folder. In the past our programs always were installed in the root of a shared folder on the server. This is the first one we have ever created that is designed to be run on individual workstations or a server.
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>If only on a workstation where do I install it? Do I put it in Program Files or C:\myapp?
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>Any and all opinions are welcome.